FSN Starts Management Innovation... "Sustainable Growth Through Fundamental Recovery"

FSN, a KOSDAQ-listed company, is embarking on management innovation with the keywords 'restoring trust,' 'improving performance,' and 'sustainable growth.' Despite challenging domestic and international conditions last year, the company achieved its highest-ever sales and turned operating profit positive since its founding. This year, FSN plans to actively seek changes to fundamentally recover its fundamentals and regain market trust.

On the 28th, FSN announced through a public disclosure that CEO Lee Sang-seok has resigned from his position as co-CEO, and CEO Seo Jeong-gyo will lead all of FSN’s businesses under a unified leadership structure. Lee Sang-seok will fully focus on managing Hyper Corporation. The plan is to complete the business separation between FSN and Hyper Corporation, which has been underway since last year, within the first half of this year. Additionally, FSN plans to recruit young and capable new executives to expand overseas business, attract investments, strengthen IPR, and enhance corporate value.

Since being appointed co-CEO of FSN in 2021, Seo Jeong-gyo has played a central role in the advertising marketing business division and the brand win-win business, including Boosters, while focusing on integrating and streamlining several subsidiaries under FSN.

FSN has continuously improved its inefficient and complex business structure. As of 2022, it consolidated 13 advertising subsidiaries into four companies with core competencies in each field. This led to strengthened competitiveness, and despite difficult market conditions last year, the advertising and marketing business division achieved sales of 46.1 billion KRW and transaction volume of 309.5 billion KRW.

To secure new growth engines, CEO Seo Jeong-gyo is directly founding, managing, and growing the brand and platform win-win business under FSN through Boosters. The marketing and brand business divisions have become core businesses, accounting for 22% and 52% of FSN’s main business sales, respectively.

For a further leap forward this year, FSN has set three keywords: 'restoring trust,' 'improving performance,' and 'sustainable growth.' To restore trust, the company plans to open shareholder communication channels such as shareholder meetings and suggestion forums. It also aims to strengthen IPR targeting major institutions in the capital market to increase the undervalued corporate value. Furthermore, FSN plans to accelerate securing financial soundness through the repayment of convertible bonds (CB).

FSN will continue its performance improvement and sustainable growth strategies for greater growth than last year, which saw record-high sales and a turnaround to profitability. The company has streamlined its business through the integration of advertising and marketing subsidiaries. This year, it expects business synergies across different areas to be further maximized.

In the brand business division, inquiries for partnerships with several promising brands with high growth potential are rapidly increasing. Boosters, which is leading this effort, is expected to achieve approximately 40 billion KRW in sales and over 8 billion KRW in operating profit in the first quarter, despite it being a traditional off-season. This is anticipated to set another quarterly record. Sales are expected to increase by more than 360% compared to the same period last year, and operating profit is expected to turn significantly positive, contributing greatly to FSN’s performance this year.

Seo Jeong-gyo, CEO of FSN, stated, "This year, FSN will achieve a definite turnaround with the keywords ‘restoring trust,’ ‘improving performance,’ and ‘sustainable growth.’ We will do our best to restore trust in our company, which has been damaged by various misunderstandings, concerns, and a prolonged stock price decline." He added, "This year, we will sincerely work to improve performance and enhance shareholder value, firmly regaining investors’ trust."